Consumer spending on entertainment by household income in 2013

May 21, 2015

Entertainment has long been a household budget staple. In 2013, the average household spent $2,482 on entertainment, or 4.9 percent of total household spending. Income affects most household spending patterns. In other words, the higher the household income, the greater the dollar amount spent on goods and services in general.

In 2013, the group with the lowest household income—the lowest 20 percent—spent around $1,000 on entertainment. They spent the most on audio and visual equipment ($548). The highest 20-percent income group spent more than double on entertainment what the third 20-percent group spent ($5,133 versus $1,997, respectively).

The percentage of the household budget spent on entertainment, however, varied by category. The share of the budget spent on total entertainment increased with each income group, except for the second 20-percent income group. Those in the lowest income group spent 4.5 percent on entertainment, while those in the highest spent 5.2 percent.

Consumer spending on entertainment as a percent of total annual expenditures, by income group, 2013

Item

Lowest 20 percent

Second 20 percent

Third 20 percent

Fourth 20 percent

Highest 20 percent

Total entertainment

4.5

4.3

4.7

4.9

5.2

Fees and admissions

0.5

0.6

0.8

1.0

1.6

Audio and visual equipment and services

2.4

2.3

2.1

2.0

1.5

Pets, toys, and playground equipment

1.3

1.1

1.2

1.3

1.0

Other entertainment supplies, equipment, and services

0.2

0.3

0.6

0.6

1.0

The percentage spent on fees and admissions, and other entertainment supplies, equipment, and services increased as income increased. The share spent on audio and visual equipment and services decreased as income increased, from 2.4 percent among households in the lowest income group to 1.5 percent among households in the highest. While the dollar amount spent on this category increased with income group, total spending also increased. Therefore, spending represented a smaller share of the household budget.